In the 28+ years that we have helped entrepreneurs form their companies one of the most frequently asked questions is “How do I open a bank account for my new company?” We will address this process in this informational blog post.
First of all, if you are forming a Delaware company but intend to operate your company in another U.S. State we recommend that you open your bank account in your home State rather than Delaware. This is for your convenience in making deposits and managing your bank account in the future.
Keep in mind that banks are private businesses and the account opening requirements may vary from one bank to another. Your local bank will require some or perhaps all of the following documents:
• A Certified Copy of your Certificate of Incorporation (Inc.) or Certificate of Formation (LLC). This document comes directly from the Delaware Secretary of State’s office and proves that your company was duly filed in Delaware. HBS can provide this document for you if you do not have one for a reasonable fee.
• A Certificate of Good Standing (AKA Certificate of Legal Existence). This document states that your company is in good standing with all Delaware taxes and fees paid as of the date it is generated. Usually, this document is required to be fresh, within the past 30 days. Once again, HBS can provide this for you.
• A copy of your company’s “bylaws” (Inc.) or Company Agreement (LLC). This document will specify the governance of your company and may specify who the Director and Officers are (Inc.) or who the Members and Managers are (LLC). This document is provided for you when you form a company through HBS (using our Standard or Premium Service) and can be emailed to you if you have misplaced your original copy.
• A federal Tax I.D. Number (AKA: EIN) for your company. This number must be obtained from the IRS by filing form SS-4. The fastest and easiest way to get this is to have HBS do it for you. In one day we can obtain this for you without any hassle or wasted time on your part holding on the phone with the IRS.
• A “Banking Resolution”. This document is a record of the meeting of the Board of Directors (INC.) or Members (LLC) which specifically empowers the company to open a specific bank account with a specific bank. Your bank may be able to provide this for you or once again a quick call to HBS is all you need.
• A “Certificate of Authority” from your home State. This document proves that your Delaware Company is registered to do business in your home state. This requires a filing with the Secretary of State’s office in your home State, which HBS can handle for you, again for a reasonable fee, which varies from State to State.
• A picture I.D. of the person opening the bank account such as a driver’s license or passport.
• A “Business License” from your local state, city or county government.
Also, don’t forget your initial deposit usually of $100 or more. This can be a check from another account made out to your new company or it can be in cash. Some banks may require more than $100.
Knowing what you need before you walk in the bank will get the best and most expedient results. A phone call to the bank will alleviate any confusion and assure you that you will be able to open your bank account in one visit.
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